GROUPAMA / 2020 UNIVERSAL REGISTRATION DOCUMENT

6 EARNINGS AND FINANCIAL POSITION Management report of the Board of Directors

International activity and earnings 6.1.4.4

31.12.2019 pro forma

31.12.2020

International premium income (in millions of euros)

L&H

P&C

Total

L&H

P&C

Total

Italy

417

916

1,334

389

858

1,247

Greece

61

90

151

65

83

148

Turkey

30

119

149

34

142

176

Hungary

168

174

342

173

192

364

Romania

17

208

225

22

198

220

Bulgaria

9

11

19

13

11

24

9

56

65

9

57

66

Gan Outre-Mer

TOTAL

712

1,573

2,285

705

1,540

2,245

The Group’s international combined premium income was €2,245 billion at 31 December 2020, down 1.7% from 31 December 2019. Property and casualty insurance premium income was €1,540 million as of 31 December 2020, down 2.1% compared with the previous period due to the decline in the passenger vehicle insurance segment (-5.6%, or nearly 60% of written premiums in property and casualty insurance). This decrease is attributable to most countries, mainly Italy (with Covid-19 combined with competitive pressure), which continued to implementits underwritingrecoveryprogrammebegun last year. In this particular context, Hungary and Turkey managed to post an increase in passengervehiclepremiums.The good performanceof agricultural business (+16.3%) and business and local authorities (+2.1%) is noteworthy. Life and health insurance premium income decreased 1.0% to €705 million. Individual life and health insurance decreased 1.8% due to the decline in individual savings/pensions(-3.4%, or nearly 65% of life and health insurancewritten premiums),mainly in Italy. Group life and health insurance was up +5.0% at €91 million in connection with the growth in the Group retirement segment (+11.9%), especially in Italy and Greece.

Economic operatingincome from insurancewithin the International scope represented a profit of €24 million at 31 December 2020 compared with a loss of -€96 million at 31 December 2019. Economic operating income from the property and casualty insurance business amounted to €8 million at 31 December2020 comparedwith -€110 millionat 31 December2019. The combined ratio was down 10.6 points at 101.5%. The impact of the health crisis and the lockdownpoliciesdecreasedthe frequencyof claims in all the subsidiaries,which offset the decrease in new business, mainly in the motor insurance segment. It is worth noting that the Italian subsidiary’srecovery plan continuedand contributedto the improvement of this result. The operating cost ratio worsened by 1.2 points to 35.3% under the effect of the decline in earned premiums. Economic operating income from life and health insurance remained stable at +€15 million in 2020. Non-life personal insurance improved with a combined ratio down 7.2 points at 93.0% due to the decrease in the frequency of claims associated with the lockdownperiods (mainly in individual health). Conversely, life insurance underwriting income decreased due in particular to the decrease in new business, net inflows, and redemptions.

127 Universal Registration Document 2020 - GROUPAMA ASSURANCES MUTUELLES